Warren Buffett steps down from Gates Foundation board
Superstar investor Warren Buffett has resigned as a trustee of the Bill and Melinda Gates Foundation.
The chairman and CEO of investment powerhouse Berkshire Hathaway made the announcement in commenting on his annual contribution of company shares to five foundations, among them the Gates Foundation.
“Today is a milestone for me,” he started out. “In 2006, I pledged to distribute all of my Berkshire Hathaway shares — more than 99% of my net worth — to philanthropy. With today’s $4.1 billion distribution, I’m halfway there.”
Buffett went on to compare philanthropic styles, calling his largesse “wholesale” giving in contrast to one-on-one efforts by people such as his late sister Doris, who practiced what he called “retail” philanthropy. Then he moved on to the only recipient he still serves on the board of, the Gates Foundation.
“For years I have been a trustee — an inactive trustee at that — of only one recipient of my funds, the Bill and Melinda Gates Foundation (BMG),” he wrote. “I am now resigning from that post, just as I have done at all corporate boards other than Berkshire’s. The CEO of BMG is Mark Suzman, an outstanding recent selection who has my full support. My goals are 100% in sync with those of the foundation, and my physical participation is in no way needed to achieve these goals.”
While the multibillionaire is 90, his timing, coming soon after the founding couple announced the end of their 27-year marriage, raised some eyebrows. The only other members of the three-member board are Bill and Melinda Gates, The Associated Press noted. Buffett has been a trustee since 2006.
The divorce announcement was followed by disclosures that Microsoft Corp. board members last year determined that Bill Gates should no longer sit on that company’s board in the wake of allegations of improper conduct. But it’s not clear whether that influenced Buffett’s timing.
Buffett has been stepping away from leadership roles at his own company too, in addition to other corporate board positions, as USA Today noted, including this year’s exit from Berkshire Hathaway.
He also looked back on decades of wealth accumulation and noted that billionaires are falling out of favor. He mulled over what stage of life is the best one to give away wealth. And he spoke of how to handle intergenerational wealth, a topic that Disney heir Abigail Disney has also begun digging into of late.
“Dynastic behavior is less the norm here than in most countries and its appeal will likely diminish,” Buffett wrote. “After much observation of super-wealthy families, here’s my recommendation: Leave the children enough so that they can do anything but not enough that they can do nothing.”
Buffett’s donation announced Wednesday awarded the Gates Foundation more than $3.2 billion, bringing his total giving to the foundation to nearly $33 billion, Suzman said in a statement obtained by the AP.
“I know Warren’s departure raises questions about the foundation’s governance,” Suzman said, adding he has been “actively discussing with him, Bill, and Melinda approaches to strengthen our governance to provide long-term stability and sustainability for the foundation’s governance and decision-making in light of the recent announcement of Bill and Melinda’s divorce. I plan to share additional information in July.”
With News Wire Services
